Direct to customer industry continues to grow, generating new employment opportunities

The D2C (direct-to-consumer) concept is showing consistent growth. The size of the industry has grown rapidly to over $2 billion last year. This can be attributed to the distinct benefits that it offers to consumers, which has further contributed to its rise in popularity. 

According to the Indian Direct Selling Association (IDSA), direct-selling companies are contributing to the overall growth and is one of the largest contributors to self-employment.

Ridhima Kansal, director, Rosemoore, said that the D2C business model certainly offers an ideal approach for every brand. Regardless of the scale of business, location or segment, adopting a D2C method can significantly impact the magnitude of success.

"An important consideration is that brands are focusing on minimising their margins which becomes more seamless if they have greater control over production and logistics channels. This is made possible by selling directly to consumers which also has the added advantage of building stronger customer relationships by creating a bespoke omnichannel experience," she said.

According to data, India currently boasts a presence of more than 800 D2C companies with the market expected to be $100 billion in 2025. Despite a slowdown in funding, D2C brands received an investment of $253.8 million in the first five months of this fiscal year, which represents 30 per cent of the overall finance secured throughout the entire FY22. 

"Propelled by a mercurial increase in first-time internet user base & evolving consumer expectations, this sector has witnessed rapid expansion so far. This was further visible during the pandemic where the pace of growth quickened, in stark contrast to other industries which underwent a significant downturn," Kansal said.

Data show that over 80 per cent of audiences preferred to watch video content from a brand rather than read a blog or a social post. 

Kansal said that effective influencers and continuous research are essential as the target audience is more readily persuaded when they can genuinely connect with influencers. It is equally important to have an eye on where the target audience is actually interacting. 

"In a very short period of time, the industry has secured a strong foothold by anticipating the needs, wants and feedback of consumers. In addition to the vast consumer base of the metro cities, companies in this segment are focusing on a steadily growing group of online consumers in Tier-2 or Tier 3 cities or metro areas, interacting with them on a direct basis to collect feedback on areas of improvement and create premium products," she said.